Brazil's Petrobras sells major pipeline subsidiary to Canada

2 years ago

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Rio de Janeiro: Brazil's national oil company Petrobras has announced that it is selling off Nova Transportadora do Sudeste, its subsidiary responsible for operating 2,700 km of pipelines in the south of the country.

As part of a massive divestment plan within Petrobras, the company was sold to the Canadian investment fund, Brookfield, it said on Thursday.

While no official value for the sale was given, the Brazilian press placed it at an estimated $6 billion.

Nova Transportadora do Sudeste manages Petrobras pipelines in the states of Rio de Janeiro, Sao Paulo, Espírito Santo and Minas Gerais, all states in the southeast of Brazil, where the country's largest oil deposits are located.

Petrobras is undergoing a deep financial crisis due to low oil prices and the discovery of a massive corruption ring within its ranks.

The company is planning to divest assets worth $15 billion by the end of the year as a way to reduce its debt, which reached $124.5 billion in June.